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Tasman District Council Remains Economical – With The Truth

28/08/2018

Waimea Dam You Pay

This Council is always looking for ways to save. We have found that we can stockpile the truth by only using it sparingly.

For instance, in the agenda for Tuesday 28th August 2018 the council staff inform me:

Funding and Finance – Waimea Community Dam
The Nature of Public Investments

18.10 Concerns have been raised in the past about the Council’s investment in the proposed Waimea Dam being a subsidy to irrigators. What is proposed is not that but is an increased Council contribution to get a project over the line. The Council should be motivated to do that (within limits) because the do nothing and alternative augmentation options cost the community more and/or deliver less value.

18.11 Public capital investment in government-owned assets creates the opportunity for private investment and productivity – that is why councils and central governments do it. The effect of public capital investment on economic growth is hotly debated. While analysts debate the magnitude, the evidence is that there is a statistically significant positive relationship between infrastructure investment and economic performance.

18.12 In the case of this project the investment opportunities are for the irrigators and others to take. Some may argue that there is an element of exclusivity here in that ‘affiliation’ and a water supply agreement is required to gain access to the benefits. In other words, access is available for a fee.

18.13 Other public investments in assets such as roads, airports, ports, transit systems, and even community facilities create investment opportunities for and ‘subsidise’ someone. Our consenting and regulatory work enables developers and others to profit also. While some may be genuine public good and access is ‘free’ there are many other examples where a fee is needed to particulate.

It is such a relief to know that this dam funding model is not a subsidy to irrigators – I was obviously mistaken when I highlighted the ways that this project has gone from an extractor/user pays model to a huge subsidy of irrigators.

It turns out that the urban water user and general ratepayer (staff use the term “Council”) is making an increased contribution to get the project over the line. This increased contribution reduces the amount that the irrigators are paying for their shares, and increases the cost of our shares as the percentage of water allocation remains the same. Which is obviously a different model to the irrigators getting a subsidy.

Here was I thinking that a subsidy is not a matter of opinion, it is a matter of simple maths. Either you are paying the same rate as everyone else for your shares, or you are getting discounted shares at someone else’s expense (a subsidy by any other name).

It is interesting to note also that other public investments in assets “subsidise” someone. It appears if you use “air quotes” when talking about something, like a subsidy for instance, it is somehow not an actual subsidy but instead it is a “subsidy.” This clarification is important because once upon a time I would have said staff are lying but now I understand that they are just “lying” (which is not telling real lies, just the other kind of lies).

“Lying” appears to be a common trait amongst those ardent supporters of the dam. We have seen that irrigators are often found to be “lying,” such as Juliane Raine who also claimed there was not a subsidy of irrigators, and Murray King was picked up by Newsroom reporters as using truth in an economical fashion

King bristles at suggestions the extra irrigation might pollute the very waterways it’s trying to save. “This area is already heavily irrigated. And when people say that it’s going to lead to more nitrates and things it’s just not true.” (However, he adds the disingenuous line that “farmers are not in the business of wasting resources”, which, if true, would mean councils wouldn’t have to impose rules to fence off waterways or limit farm runoff.)

And again:

Another points-scoring argument comes from Waimea Irrigators’ King: “The more you delay the project, the more it costs.” But then he adds that delaying have often been “instigated by the naysayers”, when it appears the project’s biggest hurdle has been funding.

However, it is not just irrigators that stoop to using “lies” to get their point across with more conviction. Independent CWS Advisory Group (who are independently ardent advocates of the dam) representative Morgan Williams has offered to sell his reputation down the toilet for free (likely a candidate for a Tui advert I suspect). I am sure most Tasman residents heard the radio adverts and received a glossy flier in their letterbox paid for by ….  (good point, who is funding Mr independent Williams and friends?).

He claims that without a dam there will be serious water cuts, and the Waimea River will get sicker. Well, which is it Morgan? Is the river going to dry up or are we going to have water cuts?

The dam is the only option, using natural gravel “pipes” to feed the land and fill our urban water supply. Note the use of air quotes around “pipes” because they are not real pipes – in fact they are not pipes at all. The truth is that we are using the river, and urban water user and general ratepayer is “subsidising” (staff tell me it is not real) the irrigators use of the river “pipes” under some fictitious concept called environmental flow costs.

The “Who Pays? Donut chart would have you believe that the ratepayer is picking up hardly any of the bill. In running costs alone you are paying 51% (which is conservatively around $81,100,000, over 100 years) never mind actual contributions, and underwrites of irrigator loans etc.

There are many more economies of truth in the flier such as alternatives that won’t work, the dam is the most affordable option, the project has region wide benefit, etc etc. But I will highlight just one more.

Votes YES for the Waimea Dam

Morgan Williams, ardent supporter of all things truthful would have us believe that the Waimea Community Dam has had 18 years of YES votes at “every stage” of the Community Dam. Very conveniently, he entirely overlooks the 11th December 2014 vote that was a NOT YES, back when the Council consulted on a Council owned and funded dam.

Tasman District Council Minutes of Full Council – 11 December 2014 Minutes

That the Full Council

  1. receives the Proposed Waimea Community Dam – Funding and Governance Options report RCN14-12-01; and
  2. agrees not to include either option 1 or option 2 of the funding proposals from the Funding and Governance Statement of Proposal consulted on in October/November 2014 in the Long Term Plan 2015-2025; and
  3. Funding and Governance Statement of Proposal consulted on in October/November 2014 in the Long Term Plan 2015-2025; and
  4. requests that staff include $25 million in the Long Term Plan 2015-2025 Consultation Document for a water augmentation scheme being Council’s share of the environmental flows and provision for the current and future urban water needs for the Waimea basin; and
  5. notes that a commitment to funding a water augmentation scheme in the Long Term Plan 2015-2025 will be conditional on project scope (including an independent review of alternative options for urban supply encompassing ecologically sustainable water management practices, as agreed by Council) and external funding being agreed; and
  6. establishes a Council Controlled Organisation for the objectives set out in s59 of the Local Government Act 2002 and for the purpose of enabling external funding to be obtained, enabling the statutory purposes exercisable on behalf of the Council to be accessed, and delivering cost effective local infrastructure; and
  7. notes that further consultation and engagement with the public on a water augmentation scheme will be undertaken, including on a new proposal in the Long Term Plan 2015-2025 Consultation Document; and
  8. notes that the decision to proceed or not proceed with the Waimea Community Dam cannot be made until further information is available; and requests that staff report back on the work programme to implement these resolutions; and
  9. instructs staff to write back to all submitters with information on the Council’s decisions contained within this report and informing them on the next consultation steps; and
  10. requests that staff report back to Council on the proposed constitution and board make up of the Council Controlled Organisation; and
  11. requests that staff report back to Council on the opportunities available for the promotion of water conservation; and
  12. promotion of water conservation; and requests that staff report back to Council on options to attribute the $25M funding for urban water needs and environmental flows and to model these funding options on a number of sample properties; and
  13. advocates, in seeking any external funding for direct beneficiaries, a proportional user-pays model whereby contributions are relative to consumption or future consumption; and
  14. ensures that the Long Term Plan 2015-2025 Consultation Document contains information on alternative options to the proposed Waimea Community Dam.

Note that at this juncture we were to advocate a proportional user-pays model. Which is more or less what was presented to me when I was first asked to vote on proceeding with the dam. Then we had to NOT “subsidise” the irrigators into the current funding model to get the version we have now. A model that some describe as a wealth transfer of significant magnitude.

Waimea dam funding pie chart

The TDC staff pie chart is slightly more reflective of the current funding model, although, it also neglects to shade the $35million ratepayer underwrite of the CIIL loan in at the very least a hatched colour.

Let us return for a moment to the “lies” told by dam advocates such as Mayor Kempthorne and senior council staff. This old, often repeated, chestnut is one of my favourite:

Environment and planning manager Dennis Bush-King said “In the worst-case scenario, when there are cease-take directions, Tasman will face its own ‘Cape Town’ situation and people will collect water from tankers.“

Surely this is a fact? Well, it is certainly a possible outcome … if the Council elects NOT to build the dam … AND there is a serious drought … Ohh and a change of council policy (something they neglect to mention – economical with the truth).  The current agenda mentions on at least two occasions that council policy is:

4.16 For many years, Council has accepted that ‘doing nothing’ is not an option when it comes to addressing the water allocation and water quality issues in the Waimea River catchment.

4.35 As noted above, “doing nothing” is not an option when it comes to addressing water allocation and water quality issues in the Waimea River catchment or for securing the urban water supply against droughts and demands from growth.

And yet we proceed to make media statements that the worst-case scenario if the dam doesn’t go ahead is a do nothing option.

There are many other economical uses of the truth in the agenda, however, it is late and tomorrow will likely be a big day as we vote on the dam. As we are told that a $26 million change in the dam funding model is not worth consulting the ratepayers on (even if it means pushing out $20m worth of budgeted projects) I will just leave you with the question I have asked before:

If this dam is so good why are we constantly “lying” to sell it?

Filed Under: Projects, Your Say Tagged With: Lies, Waimea dam

Introducing Dean

Dean McNamara Husband, father, and a fourth generation local from rural Tasman. Now acting as your voice on the Tasman District Council (TDC). More about me.

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